SUCESSES FACTORS

OF NESTLE AS A
BRAND

Presented b
Raj:122611510
Prasad:122611510
Venu:122611512
Sneha:122611512
Rakshit:122611513
Amulya:122611514

TOPICS TO BE COVERED
History
Company Philosophy
Product/Service Features
Pricing & Distribution Strategy
Brand Communication
Evolution Of Advertising
Brand Identity
Brand Strengths & Limitations

COMPANY
Nestle history begins in 1866, with the foundation of the AngloHISTORY
Swiss Condensed Milk Company.
Henri Nestl develops a breakthrough infant food in 1867.
1905 - company he founded merges with Anglo-Swiss, to form what
is now known as the Nestl Group.
Henri Nestl was one of the first Swiss manufacturers to build up a
brand with the help of a logo.
Henri Nestl adapted the coat of arms by adding three young birds
being fed by a mother

COMPANY PHILOSOPHY
Company reflect the basic ideas of fairness,
honesty and a concern for individuals and society.
Business is built on the conviction that to have
long-term success.
Objective-To manufacture and market its
products in a way that creates value that can be
sustained over the long term for shareholder.
It recognizes that its consumers have a sincere
and legitimate interest in the behavior, beliefs and
actions.
Nestl embraces cultural and social diversity and

Key theme of the Management and Leadership- e put

our priority on people rather than systems.
Organizational structure is flat rather than hierarchical,
and gives individuals plenty of opportunities.

NESTLE
More than 2,000 brands, from global icons to local favorites.
PRODUCTS
They are into
Baby Foods

Health care & Nutrition

Bottled Water

Ice cream

Cereals

Pet care

Chocolate & Confectionary.

Coffee
Culinary, Chilled & frozen food
Dairy
Drinks

Weight Management

PRICING STRATEGY OF NESTLE

Nestl's multi-price point strategy: This works for Nestle

only because of the brand equity and the strong brand
loyalty of its customers.
In the case of Nestle its competitive advantage comes
from a tight integration of its
R&D, product innovations, comprehensive geographic
presence and from its people, culture and values.
Flexible prices are the key factor of success of
Nestle in global market.
Prices are affordable to almost all types of
consumers as they have wide range of single product

Contd

Bulk purchase discount is also provided at the whole

sale markets as well as at the market stores.
Seasonal price variations are also seen, especially in
the case of chocolate products.

DISTRIBUTION STRATEGY
Nestle
follows
the
FMCG
strategy
of
distribution which involves breaking the bulk.
Manufacturi
ng

C&F Agent

Manufacturi
ng

Distributors

Bulk Buyers

Retailers

Consumers

Consumer

Contd

Nestle channel is known to be strong with a good

marketing and sales network for channel
distribution.
Nestle regularly introduces trade discounts and
various tactics to keep the channel motivated.
Major challenge is in the distribution of Maggi
which is the most in-demand product along with
Nescafe.
Due to these Nestle is able to drive
otherproducts in the market as well.
Challenge -chocolate segment where it faces stiff
competition from Cadbury and hence selling the
chocolates becomes difficult.

BRAND COMMUNICATION-MAGGI
After the MSG and Lead crisis in 2015 they blocked all lines of
communication with consumers
Nestle expected to advertise aggressively to regain Maggis lost ground
in retail shelves and consumers carts
Since Maggi is a very popular brand with a bunch of Loyalists
It is not very difficult for Maggi to Bounce back
Right after the crisis Maggi rolled out three films as part of a brand
campaign themed we miss you too on its social media channels.

ADVERTISING-NESTLE Maggie
1980s Mummy, Im hungry and the solution being
offered is Maggi.
The tagline is Fast to cook, good to eat.
Early 1990s - Mummy, bhook lagi hai (Mother, Im
hungry)
Bas do minute (Wait for 2-minute)
Late 1990s - Badi Gazab Ki Bhook Lagi, Maggi
Chahiye Mujhe Abhi (Feeling very hungry, I want Maggi
quickly)
2000s - ads shifted from just a 2-minute noodle to also
include the benefits of its protein and calcium content
Taste Bhi, Health Bhi.

2009 - Me and Meri Maggi campaign - invited consumers to share their

Maggi moments. upload their Maggi moments and their favourite recipes or
stories hitwith the company will get a chance to be featured onMaggi
packets or ads
2012 - Amitabh Bachchan has been made the brand ambassador of Maggi
Do minute Mein Khushiyan.

BRAND IDENTITY-MAGGI
For Nestl, packaging has a key role to play in brand
recognition
Packaging is the first contact consumers have with
Nestle brands.
Nestl has been able to change individual product
packaging to stand out from the crowd and hopefully
secure the longevity of some brands .
It has targeted new packaging to specific markets in
order to grow its market share there by increasing its
product differentiation.

Maggi

: Launched in 2005 Initially targeted Working

Women.
Then they targeted Children.
Promotions Positioned the noodles as a convenience
product for mothers and as a fun product for children.
Promoted product by distributing free samples
Effective Tagline Communication

AND STRENGTHS AND LIMITATIONS-MAGGI

STRENGTHS: With the presence in different product
categories under the umbrella brand of Maggi with large
SKUs
1stMover Advantage: Maggi has established itself a
pioneer in changing the eating habits & acceptance of
Noodles as easy meal.
High Customer Pull: With its distinguished promotion
strategies & branding hence creating strong customer
connects.
Distribution Channel: Robust & well established
distribution channel of the parent company (NESTLE) is
helping in making the product available in the Market.

LIMITATIONS :

Ill effects of Maggi: Awareness about ill effects of Maggi

is gaining momentum with
more educated class
becoming more health conscious.
Risk of Over Dependence: Company is playing hard on
the risk of over dependability on Maggi Noodles, as 57%
(2014).
Competition: Tough competition from the local
national player is the area of concern for the company

&

Negative word of mouth: Propagation of ill effects of

Maggi noodles through online & Social Media possess
threats to the existence of Maggi.

Thank